Importers Bear Cost of Customs Inefficiencies, Demurrage – Freight Forwarder
Importers Pay for Customs Delays, Demurrage – Forwarder

Importers are bearing the financial burden of inefficiencies within Nigeria's customs and cargo clearing system, leading to a continuous rise in the cost of imported goods, according to the Managing Director of Mainstream Cargo, Seyi Adewale.

Adewale, speaking with The Guardian at his office at the Murtala Muhammed Airport (MMA) in Lagos, said importers and cargo agents are often forced to absorb the costs of delays caused by government agencies and terminal operators. He highlighted frequent downtime on customs clearing platforms and poor ICT infrastructure as key disruptors that increase operational costs for importers and freight forwarders.

He explained that any interruption in customs processing platforms directly impacts the final cost of goods, as importers operate within limited demurrage-free periods. Adewale stated, “On the air side, infrastructural challenges have been largely mitigated, but let me start with one major ICT infrastructure that can affect cargo clearing and increase costs. The inefficiency or downtime expressed on the customs clearing platform has a direct correlation on the final cost of an item. We have just seven days to clear goods for any client, demurrage-free. If for any reason there is downtime or issues with customs ICT infrastructure, it directly affects the shipment. If customs systems are down, the importer eventually pays for that inefficiency.”

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The delays not only increase costs but also create tension between importers and licensed clearing agents under pressure to meet strict timelines. Adewale criticized the growing practice by shipping lines of reducing demurrage-free periods for cargo arriving at Nigerian ports, describing it as exploitative. He noted that some importers now have only four days to clear cargo—a timeline he considers practically impossible given the bureaucratic bottlenecks in the port system. “Before now, shipping companies gave between 14 and 21 days free demurrage, but now some importers have only four days. The counting starts immediately the vessel arrives, not when the cargo is discharged. So you are almost guaranteed to pay demurrage,” he said.

The freight forwarder alleged that delays in cargo positioning, examination procedures, and customs processing are often beyond importers' control, yet the financial consequences are transferred entirely to them. Beyond customs challenges, Adewale identified weak infrastructure across cargo handling facilities as a major obstacle. He called for improved cold-chain infrastructure for temperature-sensitive cargo, emphasizing that cargo handling companies must provide cold rooms and ensure consistent temperature monitoring.

He also raised concerns about poor ICT communication among cargo handling companies, airlines, customs, and regulatory agencies such as the National Agency for Food and Drug Administration and Control (NAFDAC) and the Standards Organisation of Nigeria (SON). Seamless communication among all stakeholders is necessary for efficient cargo operations, he said.

Adewale further questioned the long-term capacity of airport cargo facilities to cope with Nigeria's growing economy, urging authorities—especially the Federal Airports Authority of Nigeria (FAAN)—to invest in innovation, space optimization, and modern screening equipment. He declared that FAAN must continuously upgrade screening machines and improve cargo terminal planning to prevent congestion and operational delays.

On the seaport side, he lamented the increasing decentralization of cargo terminals, saying importers often struggle to locate their shipments after arrival. Some cargoes are transferred to distant terminals outside the main port corridor, complicating clearance processes and increasing logistics costs. He called for urgent reforms in customs operations, cargo handling procedures, and port infrastructure to reduce avoidable costs and improve the competitiveness of Nigeria's logistics sector.

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